Trading Procedures
How to Buy: Our Trading Procedures (CIF & FOB)
A clear, transparent process for serious fuel buyers and brokers. Below is the exact document sequence — LOI, SCO, ICPO, contract, SGS inspection and delivery — with both CIF and FOB variants.
Most disputes and most scams in physical petroleum trading come from an unclear process: parties who cannot say who does what, when, and against which document. LinkPort works to a documented sequence so every counterparty — buyer, seller and broker — knows exactly where a deal stands. We honour NCNDA/IMFPA so intermediaries’ roles and fees are protected, and we never charge upfront "verification" or "allocation" fees.
The document sequence
Whether CIF or FOB, a compliant transaction moves through the same core documents. If any term below is unfamiliar, our ICPO and SCO guide explains each one.
1. LOI or ICPO (buyer)
The buyer opens with a Letter of Intent or an Irrevocable Corporate Purchase Order stating product, specification, volume, destination and Incoterm.
2. SCO / Soft Offer (seller)
LinkPort responds with a Soft Corporate Offer: price, quantity, delivery terms, procedure and validity.
3. Contract (SPA)
On agreement, a Sales & Purchase Agreement is executed, defining payment instrument, inspection and delivery schedule.
4. Proof of Product & payment instrument
Seller evidences product per contract; buyer arranges the agreed instrument (e.g. DLC/SBLC or MT103 by contract). See what POP actually is.
5. SGS inspection
Independent quantity & quality inspection (SGS/Intertek/Saybolt) at load or discharge confirms the parcel.
6. Delivery & documents
Title and shipping documents transfer against payment per the agreed Incoterm.
CIF procedure (delivered)
Under CIF (Cost, Insurance, Freight) LinkPort delivers to the buyer’s discharge port or ASWP:
- Buyer issues ICPO against our SCO.
- Contract executed; buyer’s payment instrument verified.
- Seller ships; SGS inspection at load, insurance in place.
- Vessel arrives; SGS at discharge (DTA where agreed).
- Payment against documents; title transfers.
FOB Rotterdam procedure (in-tank)
Under FOB Rotterdam the buyer takes product in-tank or nominates a vessel:
- Buyer issues ICPO; tank/terminal confirmed.
- Injection / Tank-to-Tank (TTT/TTO) or Tank-to-Vessel (TTV) as agreed.
- Dip test / DTA where contracted; SGS quantity & quality.
- Title transfer in-tank or on loading.
- Payment per contract instrument.
Frequently asked questions
Do you start with LOI or ICPO?
Either. Many buyers open with an LOI to receive our SCO, then issue an ICPO to proceed to contract. Brokers are welcome; we sign NCNDA/IMFPA to protect intermediary fees.
What payment instruments do you accept?
Instruments are defined per contract and can include DLC/SBLC or MT103 by agreement. Beware anyone presenting MT199/MT799 as "proof of funds/product" — that is a known misuse we explain in our guides.
Do you charge any upfront fee to release POP or allocation?
No. Legitimate procedures never require upfront "POP release", "allocation" or "verification" fees. See oil trading scam red flags.
Is SGS inspection always included?
Yes. Independent quantity & quality inspection is a standard, non-negotiable part of our procedure — it protects both sides. Read what SGS inspection is.
Start a transaction
Send your LOI or ICPO and we will return an SCO and the applicable CIF or FOB procedure. Clear, documented, and compliant from first contact.